A borrower and a lender agree on a mortgage interest rate. If inflation turns out to be less than expected
A) the actual real interest rate will exceed the expected real interest rate.
B) the actual real interest rate will be less than the expected real interest rate.
C) the actual nominal interest rate will be higher than expected.
D) the actual nominal interest rate will be less than expected.
A
Economics
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What will be an ideal response?
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